AIA

"On the merits, AIG argued that allowing it to operate in Malaysia would generate substantial benefits to the country because it would be an investor of “patient capital” locally. Especially for life insurance companies such as AIA, the business of insurance involves accumulating and husbanding large amounts of capital that must be invested for the long term in the locale. AIA may write an insurance policy for a 30-year-old citizen, receiving premiums, and be prepared to pay under the policy on any given day during a period as long as the next 40 years. The company must invest all the premiums it receives along such a lengthy time horizon, often in long-term government bonds. These bonds fund infrastructure, such as roads, bridges, and hospitals."

"The company reinvested capital in infrastructure projects benefiting the national economy—bridges, dams, hospitals, houses, roads, and schools. As soon as it became feasible, each local company committed capital to construct its company-owned office buildings in leading cities to demonstrate its permanence, reliability, and scale. AIA’s buildings were designed according to ornate architectural plans and advanced engineering standards, achieving landmark status. At dedication ceremonies, the company’s local executives would beseech the nation’s leader—prime minister, president, king, or the like—to officiate. Critical in every life insurance operation abroad is sensitivity to local economic conditions, being sure that capital is invested patiently, including by avoiding temptation to invest in high-yield instruments that tend to be both risky and volatile. After all, life insurance companies serve as trustees of policyholders’ funds."